More than $200 billion in agency mortgage-backed securities acquired by the U.S. government at the height of the financial crisis has netted taxpayers a more than 10 percent return.
The Housing and Economic Recovery Act of 2008 was signed into law by President George W. Bush on July 30, 2008.
Among the provisions of the law was authorization for the Department of the Treasury to invest in MBS guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae.
In all, the Treasury invested $225 billion in agency MBS during 2008 and 2009.
A year ago, the Treasury disclosed plans to begin unwinding the investments at the rate of around $10 billion per month.
On Monday, the Treasury announced it had completed an orderly wind down of the MBS portfolio.
“Overall, Treasury’s MBS portfolio generated a positive return of $25 billion for taxpayers,” today’s statement said.
The announcement went on to say that the investments “helped preserve access to mortgage credit during a period of unprecedented market stress.”
Treasury to Unwind Agency MBS Portfolio
The Department of the Treasury announced plans to unload more than $100 billion in agency mortgage-backed securities at a tidy profit. Markets quickly responded, pushing rates higher.